Specialist Tax News

Advisory fuel rate for company cars

The table below sets out the HMRC advisory fuel rates from 1 June 2023. These are the suggested reimbursement rates for employees’ private mileage using their company car.

Where the employer does not pay for any fuel for the company car these are the amounts that can be reimbursed in respect of business journeys without the amount being taxable on the employee.

Engine Size Petrol Diesel LPG
1400cc or less 13p 10p
1600cc or less 12p


1401cc to 2000cc 15p




1601 to 2000cc 14p


Over 2000cc 23p






Where there has been a change the previous rate is shown in brackets.

You can also continue to use the previous rates for up to 1 month from the date the new rates apply.

Note that for hybrid cars you must use the petrol or diesel rate. For fully electric vehicles the rate is 9p per mile.